Friday, September 12, 2014

Towards Revolution: Sugar Act of 1764

In the vast tracts of land
in the west of the Atlantic, different activities were bustling. From
religious, to scientific, to economic activities, the New World had become a
flourishing colony of Europe. The Spaniards, the French, the Dutch, and more importantly,
the British had established stakes within the new continent. The British in
particular were keen in maintaining and benefiting from its holdings in the
Americas. Through taxation and as a
market for British goods, British Imperial Policy would bring the American
colonies into revolution. Among the first of its dreaded policy was passed in
1764, called as the Revenue Act, but it was notoriously known as the Sugar Act.

The conditions both in the
Americas and in Great Britain were depressed. The French and Indian War in the
Americas, also known in Europe as the Seven Years’ War, just ended in 1763. In
London, a new Prime Minister came to power. George Grenville just taken office
as Prime Minister from John Stuart, the Earl of Bute. Grenville had the
responsibility to set up the post war situation. First order of business, in
order to show gratitude to their Native American allies, they decided to
provide them lands. In 1763, they allocated lands west of the Appalachian
Mountains in the Americas to their Native American allies. It became a subject
of criticisms of the American colonist as it hampered their westward expansion.
After solving the issues of Native American lands, he had to tackle another
serious crisis - a financial crisis. The wars in both Europe and the Americas
had took toll on the financial capabilities of Great Britain. National debt was
standing at the enormous amount of £130 million. The financial troubles of
Britain was further strained with the maintenance cost of the American territories.
The government spent £350,000 a year in order to maintain a sizable force of
10,000 men in the Americas alone. The British had been occupying lands that it
could not maintain financially.

In order to solve the
problem, Grenville decided that the American colonies, the Thirteen Colonies
particularly, had to start carrying the burden of the cost of maintain Red
Coats in the region. The first target of the Grenville Government was improving
customs payment in molasses and other luxury goods. And so in 1764, the Revenue
Act of 1764, otherwise known as the Sugar Act was enacted in the colonies.

The act was an upgrade of
the Molasses Act of 1733. For decades the Molasses Act proved to be
ineffective. The Molasses Act involved the taxation of rum and molasses from
other foreign sources, like the Spanish in the Caribbean, the Dutch, and the
French, formerly occupying the Canada. The rate of customs was 6 pence for
every gallon of molasses and rum. The rate was too high for the colonials to
afford. And so smuggling became rampant.
The cost of bribing customs official was very cheap compared to the
taxes, 1 to 2 pence per gallon. And so, many merchants decided to undergo
illegal transactions in order to save cost. If caught, the merchant remained on
the upper hand against the colonial government. Smugglers were tried by jury,
which were composed of their neighbors who also vilified the high customs rate.
Many hated the tax because it hampered the production of rum, which was a
favorite alcohol of the common people. And so, during a trial of a smuggler,
the jury sympathize with defendant and gave not guilty verdict or guilty with
very light punishments. With smuggling rampant, the Molasses act of 1733 only
generated, throughout its enforcement, £20,000. A small percentage compared to
the annual cost of maintain the British Army in the Americas.

In order to fill the coffers
of the government more effectively, the Sugar Act was passed. Under the new tax
law. Taxes were imposed on coffee and luxury items, like wine, silk, pimiento,
and calico. Rum importation were banned. And molasses import rates were slashed
by half, from 6 down to 3 pence per gallon, still higher from the bribe or
smuggling rate of 1 to 2 pence per gallon. British navy also played a key part
in the enforcement of the new tax. Inspections and seizure of the navy became
intensified by the act. All those were caught of smuggling no longer would face
a trial by jury, but a trial by a judge in a vice-admiralty court in Halifax,
Nova Scotia. Thus, court battles became more expensive and became a sure guilty
punishment for smugglers. The sympathy vote of the jury no longer exist. Also,
their lawyers had to travel from the Thirteen Colonies to Nova Scotia in the
north. And so, merchants began to
forcibly comply.

Criticism and protest reign
in the Thirteen Colonies when the Sugar Act was enforced. Rum distilleries, who
needed molasses, were protesting in the rise of cost. Merchants were also
protesting for loss of profit. People began to shout the slogan “taxation
without representation.” Daniel Dulaney explained it with his argument. Trade
restrictions like the Molasses Act of 1733 were alright as it was a
protectionist measure imposed throughout the British Empire. On the other hand,
the Sugar Act was deliberated taxation to the people of the colonies whom were
not consulted or represented in the Parliament when the act was passed.
Students were even more active in protesting against the act. They boycotted
British goods and decided to stop drinking rum as a sign of anger over the
Sugar Act.

The British government
decided to make the Sugar Act more palatable to Colonies. In 1766, they decided
to lower the customs rate on molasses from 3 pence per gallon down to just 1
pence per gallon. Therefore, paying taxes became cheaper than bribing and
smuggling molasses. Anger over the law did went down, until another round of
taxes were imposed.The Sugar Act was the start
of the road to revolution. The Act was passed by men whom the colonies never
elected nor represented them. In addition, it became a start of tax burden that
would be placed in the shoulders of the Colonies. The Sugar Act was the just
the beginning of following taxes that would enraged the colonies and result
ultimately in the War of Independence starting in 1776. See also:Stamp ActTea ActTownshend ActBibliography:Clack, George (ed.). Outline of US History. Washington DC: Bureau of International Information Program, 2005.Clark, C. The American Economy: A Historical Encyclopedia. California: ABC-CLIO, 2011.Conlin, J. The American Past: A Survey of American History. Massachusetts: Wadsworth Cengage Learning, 2012. Dobson, J. Bulls, Bears, Boom & Bust: A Historical Encyclopedia of American Business Concepts. California: ABC-CLIO, 2007.